The energy sector is at a crossroads, driven by the insatiable appetite of artificial intelligence (AI) and the data centers that power it. Goldman Sachs’ projection of a 20% increase in U.S. power demand by 2030, largely due to data centers, is not just a statistic; it’s a call to action. These facilities are expected to consume nearly 8% of all U.S. electricity by the end of the decade, up from 5% in 2022. This surge in demand is not just about more of the same; it’s about reliable, round-the-clock power. The question is, are our policies and regulations ready to meet this moment?
Litigation tactics are increasingly being used to delay and block energy infrastructure projects, creating regulatory uncertainty and making projects financially untenable. The Mountain Valley Pipeline (MVP) is a prime example. Repeated challenges under the Clean Water Act have led to years of court hearings and construction delays, driving up costs. While safety and environmental protection are paramount, rules and regulations are being weaponized to stop critical infrastructure projects. Policymakers must recognize this pattern and ensure that laws are not misused to sabotage energy development.
Data centers can’t run on good intentions alone. Companies like Meta, Amazon, and Google are co-locating their AI centers directly with power generation. Meta’s 20-year agreement to harness nuclear energy for its latest AI data center, and Google’s commitment to solar power, highlight the pressure on our energy infrastructure. Pipeline companies are receiving multiple requests to connect to prospective data centers across the country. Energy Transfer’s deal to supply natural gas to a CloudBurst Data Centers facility in Central Texas is a case in point. The question is not just about what powers these facilities, but about how federal agencies can enable innovation without stifling growth.
The federal government is responding, but it needs to do more. Under President Donald Trump’s declaration of a national energy emergency, the Army Corps of Engineers is expediting pipeline permits under the Clean Water Act. This kind of stability and efficiency is essential. Federal agencies must issue timely permits, provide clear guidance, and conduct regular, forward-looking analyses on energy demand. The rise of AI is fueling the most significant power demand surge of our generation, and midstream companies are responding accordingly. The private sector is moving fast to meet the moment. The federal government can’t afford to fall behind.
American energy policy must reject the false narrative that pits environmental progress against economic growth. Both can and must advance together. The real threat lies in bureaucratic inertia that stifles innovation. A cleaner, more prosperous future requires investment, public-private coordination, and regulatory clarity. Natural gas is well-positioned to lead this transition. By guaranteeing that federal agencies act quickly, transparently, and in partnership with industry leaders, the next generation of energy innovation will be ready to power it. “Rules matter. Safety matters. Environmental protection matters,” says Patrice Douglas, former commissioner with the Oklahoma Corporation Commission. “But rules and regulations have been inappropriately weaponized to stop critical infrastructure projects, and policymakers must recognize this growing pattern.” The future of energy is not just about meeting demand; it’s about doing so in a way that is sustainable, innovative, and responsive to the needs of a rapidly evolving sector.